Posted By Global Banking and Finance Review
Posted on May 22, 2025
LONDON (Reuters) -Britain's Financial Services Compensation Scheme said it would impose a lower than expected 356 million pounds ($478.04 million) levy on the sector for the 2025/2026 financial year, after a "strong year" in recovering cash from failed firms.
In a statement on Thursday, the FSCS - which protects customers of authorised financial services firms if they fail, or have stopped trading - said the total levy payable was 38 million pounds lower than it forecast in November.
"In 2024/25, we had another strong year of recoveries, recouping more than 56 million pounds from the estates of failed firms and relevant third parties. This led to higher opening balances carried forward from 2024/25 in certain classes," CEO Martyn Beauchamp said.
"These recoveries put money back into the financial services sector and to the customers who use it, helping tobuild trust and confidence in the sector," he added.
The FSCS expects to pay 332 million pounds in compensation to customers during 2025/26, 36 million pounds lower than previously forecast.
The scheme protects deposits held in banks, building societies and credit unions, investments, pensions, endowments, insurance and funeral plans.
($1 = 0.7447 pounds)
(Reporting By Sinead Cruise; Editing by Amanda Cooper)